Are any of the initial investment fees for a Bonchon franchise refundable?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise stated, none of the expenses on these charts are fully refundable.
Notes
None of the fees shown on this table are refundable unless a supplier has a refund policy of which we are not aware. We do not finance any fee.
[1] If you sign an Area Development Agreement with us, then you will pay an Area Development Fee to us in full when you sign the Area Development Agreement. The Area Development Fee is equal to (i) the Initial Franchisee Fee for the first Bonchon Business that you will develop and (ii) a Deposit Fee of $10,000 for each subsequent Bonchon Business you wish to develop, and therefore varies depending on the number of Bonchon Businesses you agree to open within your Development Territory (as defined in the Area Development Agreement). The Area Development Fee is fully earned when paid and it is not refundable under any circumstances. The low end of the Area Development Fee is for the development of 2 Bonchon Businesses and the high end is for the development of 10 Bonchon Businesses (but this is not a maximum).
[7] Smallwares are mechanical kitchen tools, small appliances, kitchen utensils, storage containers and cleaning equipment, as well as other items that would not be considered on their own as major equipment purchases.
Included in the smallwares, each Restaurant will order various cooking utensils from our affiliate Bonchon LLC at an estimated cost of between $100 and $200.
These amounts are included in the estimate on the charts above and are not refundable.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT\ (FDD pages 24–37)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, most initial investment fees are non-refundable. The FDD states that unless explicitly mentioned, none of the expenses listed in the initial investment charts are fully refundable. The only exception to this would be if a supplier has a refund policy that Bonchon is not aware of.
Specifically, the Area Development Fee, which is paid when signing an Area Development Agreement, is not refundable under any circumstances. This fee covers the Initial Franchise Fee for the first Bonchon Business and a Deposit Fee of $10,000 for each subsequent Bonchon Business the franchisee intends to develop. The Area Development Deposit paid for a Bonchon Business will be applied as a credit against the Initial Franchise Fee when the Franchise Agreement for that particular business is signed.
Certain initial investment costs, such as those for smallwares (mechanical kitchen tools, small appliances, kitchen utensils, storage containers and cleaning equipment), are included in the estimates provided and are also non-refundable. These smallwares include cooking utensils ordered from Bonchon LLC, estimated to cost between $100 and $200 per restaurant. Therefore, prospective franchisees should carefully consider these non-refundable costs when planning their initial investment.